What is a Cohabitation Agreement?

Understanding Cohabitation Law and Agreements in Canada

If you’re living with your partner, or planning to move in together, it’s important to understand how the law may view your relationship. In Canada, cohabiting couples can acquire legal rights and responsibilities similar to married spouses, especially when it comes to property division and spousal support after a breakup.

A cohabitation agreement is a legal tool that allows couples to set their own terms and protect their individual assets, rather than relying on default provincial laws. Whether you’re entering a serious relationship or have been living together for years, understanding how the law applies to cohabiting couples and how an agreement can help is key to protecting your financial future and avoiding unnecessary conflict.

What is legal cohabitation, and how is it recognized?

Legal cohabitation refers to two individuals living together in a marriage-like relationship without being legally married, it is most commonly referred to as being common law. In Canada, each province and territory has its own rules regarding how long a couple must live together to be recognized as common law. Typically, this ranges from one to three years, or sooner if they have a child together.

A common law relationship can affect property division, spousal support, and other rights and obligations, especially in the event of a breakup or death. Because these laws can be inconsistent and vary by location, many couples choose to formalize their expectations with a cohabitation agreement.

What Is the Purpose of a Cohabitation Agreement?

Why common law couples should consider a cohabitation contract

The purpose of a cohabitation agreement is to provide clarity and legal protection for couples who are living together but are not married. This legal contract outlines each partner’s rights and responsibilities, especially when it comes to property, debts, income, and other financial matters.

For common law couples, a cohabitation agreement can help avoid disputes and confusion by spelling out what will happen if the relationship ends. Without such an agreement, provincial law will determine the division of property and support, which may not reflect the couple’s wishes or be the best fit for their circumstances. Jointly has built a digital platform to make it easier for couples to create these agreements online, with built-in legal guidance and education.

How a cohabiting family can benefit from legal clarity

Cohabitation agreements are particularly important when:

Having a written agreement provides peace of mind and can significantly reduce legal costs and emotional strain if the relationship ends.

What Should a Cohabitation Agreement Include?

What can you include in a cohabitation agreement?

A cohabitation agreement can include terms about:

It can also include terms about dispute resolution and how the agreement can be updated.

What does a cohabitation agreement look like?

A cohabitation agreement is a written contract that is signed by both members of a couple. It includes a detailed list of assets, liabilities, and expectations. The agreement should be customized to reflect the couple’s specific situation and goals.

Agreements can be drafted by a lawyer or using online tools like Jointly, which offers a step-by-step platform designed specifically for Canadians.

Property and Finances in a Cohabitation Agreement

Cohabitation agreement when one person owns the house

If one partner owns the home, the agreement should clearly state:

This prevents disputes over home ownership down the road and protects the original owner’s interest, and the contributions of the non-owning partner.

Dividing assets, debts, and financial responsibilities

The agreement should outline how assets acquired during the relationship will be divided and how pre-existing property will be treated. It should also clarify how debts will be managed and whether partners will share day-to-day expenses.

Sample cohabitation agreement clauses for property and money

Here are a few sample clauses:

We’ve included these options, and many more, in Jointly’s agreement builder so you can make a choice that fits your family.

Planning for the Future

What happens if the relationship ends?

The agreement should specify what happens in the event of a breakup, including:

Having this spelled out in advance reduces conflict and court involvement if the relationship ends. Family law disputes can cost tens of thousands of dollars in legal fees, and take months if not years to resolve. The goal of a cohabitation agreement is to prevent this from happening by ensuring that both people are on the same page about the plan for their finances now and into the future throughout their relationship.

Can I Update My Cohabitation Agreement In Canada?

Yes, cohabitation agreements can and should be updated as circumstances change, such as:

Revisions should be made in writing and signed by both partners. We’ve included a simple review process as a part of all Jointly agreements.

What happens to a cohabitation agreement if you get married?

In many provinces, a cohabitation agreement automatically becomes a marriage contract if the couple marries. If you build your agreement with Jointly, you can include your plans for marriage in the future, and whether you’d like your agreement to continue to apply after you get married.

How to get a cohabitation agreement

Do you need a lawyer for a cohabitation agreement?

You can make a cohabitation agreement without a lawyer, whether through Jointly or by writing it yourself (though this is not recommended). It can, however, be helpful for both people to get independent legal advice. This ensures:

In most provinces, independent legal advice is not required in order for your agreement to be legally binding. Think of it as a nice-to-have, not a must have. If you can afford it, it’s worth getting.

Are online cohabitation agreements valid in Canada?

Online cohabitation agreements can be valid if they:

Jointly’s platform helps users meet these requirements and provides helpful legal education to guide the process.

A cohabitation agreement is a powerful tool for protecting your future and avoiding conflict. Whether you own a home, have kids from a previous relationship, or just want to be on the same page financially, it’s a smart move for any couple living together. Consider it a practical way to strengthen your partnership, not a sign of mistrust. With Jointly’s online platform, creating a customized, affordable, and legally sound agreement is easier than ever.

Amanda BaronI'm Amanda, one of the founders of Jointly. I've been working as a lawyer in British Columbia for over ten years. I have a deep commitment to access to justice and building stronger, more resilient communities. I’ve always believed that everyone deserves affordable, clear, and accessible legal solutions to navigate life’s big moments.

I founded Jointly because I want to empower more Canadians with the knowledge and tools to create relationship agreements that work for them, at a price they can afford. My big dream? That reaching more Canadians with Jointly ultimately keeps more families out of the court system when relationships breakdown, which can be slow, expensive and traumatic. (I may or may not have personal experience with this 😅)

When I'm not lawyering, I'm most likely hiking with my dogs, kayaking the coastal waters around North Vancouver, or hitting the sauna and cold plunge. Latest posts by Amanda Baron (see all)

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